The client sought advice on a proposed Easement and Works Agreement with a neighbouring landowner in relation to a residential development of nine dwellings. The agreement involved a £500,000 payment for access rights and installation of underground service media, alongside staged payments and obligations to compensate third parties. It also included provisions for termination, dispute resolution, and time-limited development rights.
The client requested a review of the agreement to identify risks and drafting deficiencies.
It was identified that the easement was time-limited, expiring upon completion of works, rather than granting a permanent right of way. This raised concerns about future ransom risks. The status of the access road was unclear, and its adoption would affect enforceability of service rights long-term access.
Planning permission had expired, and no extension application had been submitted. The payment structure appeared misaligned with the development timeline, and the rationale for instalments was unclear. The access road was used for pedestrian and garage access, but attempts to purchase the garages had failed. The road would need to meet adoptable standards, and a management company would likely be required post-development. The termination clause was flagged as problematic, particularly in the event of construction delays.
It was advised that the agreement be substantially redrafted to secure permanent rights and remove reliance on development timelines. A permanent easement would offer greater certainty for future owners and lenders, especially in the event of delays or market shifts.
The client was advised to obtain Office Copy Entries, clarify the road’s status, and regularise the planning position. Amendments were recommended to safeguard against future ransom demands. Further assistance was offered should the client wish to proceed with a revised draft.
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